Shipping Rates Can Make or Break Your Online Sales
If you own an online store or you run an online shopping business then shipping is the key factor for your business growth. There are many shipping methods that online stores can choose from but it is something that needs a lot of research and evaluation. To find what shipping method and pricing works for your product, you need to consider the actual cost of shipping, cost of packaging and what your competitors are charging for the same or similar products.
Research has shown that 44% online consumers add products to their cart but do not buy it because of heavy shipping charges. 22% customers say that the shipping and the handling fees were included later in the process as a hidden cost and these costs were not shown in the description that misled them.
That makes a total of 66% customers that add their items to the cart but never buy because of shipping charges and hidden costs (associated with shipping). Practically it isn’t possible to waive the shipping cost. If your customers aren’t willing to pay it, you will have to pay the shipping cost from your pocket and then in return, increase the price of the product. Or alternately you can choose cheap shipping companies.
72% customers want free shipping for their online purchase no matter which product they are buying. Sometimes for the customers, shipping fees become more important than the product itself. On top of that there is a strong competition in the market among online sellers. The ones that can afford or offer free shipping end up having more sales.
However it doesn’t mean that you have to do the same. Free shipping is not a good choice always. It is an important factor though but it is not the core product. It is an additional selling trick that most of the online sellers are using these days to boost their sales.
How does this works? Here are few shipping rate methods for online stores that you can use to enhance your sales:
1) Free shipping on limited products with higher price value – If a product is fairly expensive or is among one of the top products of your online store, why not provide free shipping? This will help you to sell that product more often and customers will be happy to find this as a great steal.
2) Start a flat rate shipping method –Every week, just like product discounts, give a flat rate shipping costs. You can minimize the discounts on the products while offering low shipping rate or may be in another week you can hike a little bit of your shipping cost and go loud with your discount sale but for a limited period. Make sure that the shipping fees are easily visible while customers are going through the products. This is one of the major factors why customers don’t buy. They want to know the exact price while they are deciding on to the product. There should not be any hidden costs.
3) Mix and match – Provide a mixture of free, flat and variable shipping methods to your clients making it easy for them to choose more products. For example, free shipping on a purchase of or more than $100, flat rate of $7 for shipping products of and above $50 and the exact shipping charge what you are being charged for smaller orders. By fluctuating shipping prices you will keep your consumers interested and it will make them come again and again to your online store to check out new schemes. Customers are hungry for new offers, keep them entertained with attractive shipping packages and they will love it.
The old book trick of hiking the price of the product and give free shipping, which might work but because of intensive competition, customers can easily compare prices. 27% customers who don’t buy the product after putting it in the cart are those who were comparing the prices on a different website at the same time.
Even customers understand the benefits of buying from a big store and a medium online store so take these advantages and boost your online sale. These were a few very important tips that you can apply while planning your online store or while implementing shipping methods for online store.